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Potential Banc of California, Inc. (NYSE:BANC) shareholders may wish to note that the President, Jared Wolff, recently bought US$115k worth of stock, paying US$11.50 for each share. Although the purchase only increased their holding by 6.3%, it is still a solid purchase in our view.
View our latest analysis for Banc of California
Banc of California Insider Transactions Over The Last Year
In fact, the recent purchase by President Jared Wolff was not their only acquisition of Banc of California shares this year. They previously made an even bigger purchase of US$251k worth of shares at a price of US$15.18 per share. That means that an insider was happy to buy shares at above the current price of US$12.00. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Banc of California insiders bought shares during the last year, they didn't sell. Their average price was about US$12.48. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Banc of California insiders own about US$6.6m worth of shares (which is 1.1% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Banc of California Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Banc of California insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Banc of California has 1 warning sign and it would be unwise to ignore it.